PJT Partners (US:PJT) ZACKSยท2025-07-31 17:00Core Viewpoint - PJT Partners has received an upgrade to a Zacks Rank 2 (Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][2] Earnings Estimates and Stock Price Movement - The Zacks rating system is effective for individual investors as it focuses on earnings estimate revisions, which are strongly correlated with near-term stock price movements [2][3] - Institutional investors utilize earnings estimates to determine the fair value of stocks, leading to price movements based on their buying or selling activities [3] Business Improvement Indicators - The increase in earnings estimates and the Zacks rating upgrade for PJT Partners indicate an improvement in the company's underlying business, suggesting that investors may respond positively by driving the stock price higher [4] Importance of Earnings Estimate Revisions - Tracking earnings estimate revisions can be beneficial for investment decisions, and the Zacks Rank system effectively leverages this information [5] - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance of Zacks Rank 1 stocks averaging a +25% annual return since 1988 [6] Specifics on PJT Partners - PJT Partners is projected to earn $6.25 per share for the fiscal year ending December 2025, with no year-over-year change expected [7] - Over the past three months, the Zacks Consensus Estimate for PJT Partners has increased by 2.5%, indicating positive sentiment among analysts [7] Zacks Rating System Overview - The Zacks rating system maintains a balanced distribution of "buy" and "sell" ratings across its universe of over 4,000 stocks, with only the top 20% receiving favorable ratings [8][9] - The upgrade of PJT Partners to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [9]